lOMoARcPSD|6536636
CPA Australia - SMA - M4
Summary
Strategic Management Accounting (Macquarie
University)
, lOMoARcPSD|6536636
Module 4 PROJECT MANAGEMENT
Part A: Project management defined what is a project?
Figure 4.2 common characteristics of projects.
1. Unique 2. Provides a solution to a
problem
• Principal characteristic
• Meet defined objectives
• Very different to daily agreed by business
operation partners, like + profit, -
costs, or improve a
• High level of uncertainty
specific system or process
• Investments in projects
will receive recognized
value to founder
4. Related activities 3. Defined start and finish
time
• Use multiple resources
and need coordination • Management focus on
finishing time and most
projects require
• Recognize which activities considerable investment
must process sequentially before
and which can be benefits are realised
processed at same time
• The longer project runs,
the longer it takes to
1
, lOMoARcPSD|6536636
generate ROI
What is project management?
Project management is using knowledge + skills + tools +
techniques to meet project requirements.
Extremely challenging, research on 5400 large IT
projects found:
• Half blowouts and totally cost overrun of $66 billion.
• 45% over budget, 56% less value than predicted.
• Longer project more likely to run over time and budget.
The project management process selection =>
planning => implementation and control => completion
and review
Stage 1: Project selection o Primary objectives,
acceptable performance levels, key
deliverables, initial project team, feasibility
and justification.
Primary objectivities of:
• Specification technical description of deliverables;
• Budget: how to meet project specifications with
available resources
2
, lOMoARcPSD|6536636
• Completion time4expected start and finish time The
key criteria: strategic fit and risk analysis.
Management accountant support in:
• Identifying and quantifying risks
• SWOT
• Assess financial viability of the project.
Stage 2: Project planning o Develop strategy in
detail for delivery the project.
5 key areas:
▪ scheduling4consider activities to do and their
sequence
▪ optimising cost and time4analysis sequence and
establish optimal trade-offs
▪ budgeting4detail budget; communicate resource
need; establish a control framework to perform
variance analysis
▪ performance measurement4set KPIs with clear
time frame; establish milestones.
▪ incentives4how to reward project team
Once project planning is completed, project sponsor
reconsiders the feasibility to approve or discontinue.
3
CPA Australia - SMA - M4
Summary
Strategic Management Accounting (Macquarie
University)
, lOMoARcPSD|6536636
Module 4 PROJECT MANAGEMENT
Part A: Project management defined what is a project?
Figure 4.2 common characteristics of projects.
1. Unique 2. Provides a solution to a
problem
• Principal characteristic
• Meet defined objectives
• Very different to daily agreed by business
operation partners, like + profit, -
costs, or improve a
• High level of uncertainty
specific system or process
• Investments in projects
will receive recognized
value to founder
4. Related activities 3. Defined start and finish
time
• Use multiple resources
and need coordination • Management focus on
finishing time and most
projects require
• Recognize which activities considerable investment
must process sequentially before
and which can be benefits are realised
processed at same time
• The longer project runs,
the longer it takes to
1
, lOMoARcPSD|6536636
generate ROI
What is project management?
Project management is using knowledge + skills + tools +
techniques to meet project requirements.
Extremely challenging, research on 5400 large IT
projects found:
• Half blowouts and totally cost overrun of $66 billion.
• 45% over budget, 56% less value than predicted.
• Longer project more likely to run over time and budget.
The project management process selection =>
planning => implementation and control => completion
and review
Stage 1: Project selection o Primary objectives,
acceptable performance levels, key
deliverables, initial project team, feasibility
and justification.
Primary objectivities of:
• Specification technical description of deliverables;
• Budget: how to meet project specifications with
available resources
2
, lOMoARcPSD|6536636
• Completion time4expected start and finish time The
key criteria: strategic fit and risk analysis.
Management accountant support in:
• Identifying and quantifying risks
• SWOT
• Assess financial viability of the project.
Stage 2: Project planning o Develop strategy in
detail for delivery the project.
5 key areas:
▪ scheduling4consider activities to do and their
sequence
▪ optimising cost and time4analysis sequence and
establish optimal trade-offs
▪ budgeting4detail budget; communicate resource
need; establish a control framework to perform
variance analysis
▪ performance measurement4set KPIs with clear
time frame; establish milestones.
▪ incentives4how to reward project team
Once project planning is completed, project sponsor
reconsiders the feasibility to approve or discontinue.
3
